STRICTLY CONFIDENTIAL
November 9, 1995
BEVERAGE CAN AND END AGREEMENT
This letter confirms our agreement for the Ball Metal Beverage Container
Group (BMBCG) to supply 202 12 oz aluminum cans and ends to Coca-Cola Bottling
Company Consolidated, Inc. (CCBCC).
Supply Volume and Period
Location Volume Supply Period
Mobile 200MM January 1, 1996 through December 31, 2000 (5 years*).
This agreement incorporates the "Alcan Band Agreement"
formula pricing, and also includes BMBCG conversion
prices subject to market changes as detailed below.
Nashville 185MM January 1, 1996 through December 31, 1996. This
agreements incorporates a one-year fixed London Metal
Exchange/Mid West Premium (LME/MWP) ingot price
and fixed BMBCG conversion price. Sheet conversion
price subject to market changes.
Specifications
202 / 211 x 413 12 oz aluminum non-basecoated soft drink cans (.0112" input
gauge). 202 B-64 aluminum SOT soft drink ends (.0086" input gauge shell &
.0100" input tab).
Supply Points
The 12 oz cans will be supplied from Conroe, TX and Findlay, Ohio. Ends will
be supplied from Findlay, Ohio. If the supply point is changed, it will be a
mutually agreed upon, qualified location, that is approved by CCBCC.
November 9, 1995
Page 2
Formula Pricing (Examples Attached)
Three factors determine can and end pricing:
1. LME + MWP ingot price (Alcan Band Ceiling/Floor and fixed ingot).
2. Ingot conversion to aluminum sheet for body, shell, and tab stock (Alcan
Band Formula and market price).
3. Sheet conversion to aluminum beverage cans and ends (BMBCG Conversion Price).
Alcan Band Major Points (Mobile)
(Bullet) LME/MWP ingot ceiling of $.85/lb. and a floor of $.70/lb.
(Bullet) *Five (5) year agreement between CCBCC, Alcan and BMBCG. Note: If the
LME/MWP is outside the band for 75% of the days from July 1, 1999
through December 31, 1999, then the contract is involuntarily
extended for a 6th year (2001). This agreement (according to the
Alcan Band) may be extended by mutual agreement between CCBCC, Alcan
and BMBCG for an additional 7th year (2002); this option must be
exercised by October 1, 2001 (October 1 of 6th year). Two successive
three (3) year extensions will also be made available provided all
parties agree on the terms and conditions twelve (12) months prior to
the termination of the initial five- (5) year term or any
extension period as discussed above.
(Bullet) Six (6) month average of the LME/MWP prices will be established twice
each year.
(Bullet) Binding agreement on all parties.
(Bullet) 50% of Intermediate Materials Producers Price Index (PPI) added to
ceiling and floor for 1997 and beyond.
(Bullet) Can sheet conversion price $.324/lb. (.0112") for 1996. Thereafter,
conversion price based on 50% of Intermediate Materials PPI % change.
November 9, 1995
Page 3
Alcan Band Major Points (Mobile) (Continued)
(Bullet) End sheet conversion price $.849/lb. (.0086"). An increase of $.01
to $.02/lb. is expected in 1996 due to coating cost increase. 1997
and beyond, 50% of PPI change applies.
(Bullet) Significant increases not included in PPI require adjustment to
price, but no greater than other first tier aluminum suppliers.
Ball required to take minimum 95% of committed volume in six month period
and can take maximum of 55% of annual volume in any 6 month period. CCBCC
requirements should mirror this requirement as closely as possible.
Backhaul
Can End Dunnage
Ball Supply Consolidated Bottling Backhaul Backhaul Backhaul Truckloads
Location Location ($/M) ($/M) (T/L) Volume /Year
Findlay, OH Nashville, TN $ 3.31 $ 0.09 $ 575.00 185,000,000 0000.0
Xxxxxx,XX Mobile,AL $ 2.43 $ 0.14 $ 695.60 200,000,000 1112.9
Sales Terms
Invoices are issued once per week on Monday for the previous weeks shipments.
Terms: 1% 10 days, net 30 days from Monday invoice date. Interest assessed on
past due invoices is at prime + 2%.
November 9, 1995
Page 4
Packaging
Packaging materials (can pallets, end pallets, top frames and chipboard) are
returnable and will be reconciled monthly.
Please sign both documents and return one to BMBCG and keep the other copy
for your records.
COCA-COLA BOTTLING BALL METAL BEVERAGE
COMPANY CONSOLIDATED CONTAINER GROUP
/s/ /s/
/s/ /s/
Witness Witness
11/16/95 11/9/95
Date Date
